Latest critical illness claims statistics from the major life insurers have revealed that the vast majority of claims are successfully being paid. This is contrary to the often held negative view of critical Illness policies, as it is often the “bad news” cases which are declined that are reported in the press.
Critical illness policies provide a tax free cash payment to the policy holder upon diagnosis of specified serious illnesses, providing financial security at a time when household income is typically strained and importantly removing the stress associated with meeting monthly financial commitments.
Latest statistics show Aviva paid 94% of critical illness claims, Scottish Provident 93%, and Bright Grey and Friends Life 90%. All revealed that cancer was the top cause of claim with Aviva saying it accounted for 65.9% of all their claims. The other two major causes of claim were heart attack and stroke.
Aviva’s statistics show the average age of female claimants was 44 years 2 months, and 45 years and 3 months for men. This is the stage of life where typically family and mortgage commitments are high and a cash lump sum would be of considerable benefit in terms of dealing with the financial fall-out of diagnosis.
In recent weeks there has been additional good news for consumers, with critical illness policy improvements introduced by Friends Life, Aviva and L&G. These include partial payments for less invasive breast cancer treatments and low grade prostate cancer, as well as an increase in child cover from £20k to £25k.
This positive news on claims paid coupled with ongoing policy improvements should reassure consumers that critical illness insurance can provide valuable cover for themselves and their families in addition to standard life insurance, which pays out in the event of death.
Before taking out a critical illness policy it is essential to check what cover is provided as some policies are more comprehensive than others. Some have additional partial payments for early stage illnesses and some provide children’s cover too. Individual or family medical history may lead to some exclusions of cover or additional cost.
If you’re thinking of taking out a critical illness policy, or any other type of life insurance and would like some expert advice, L&C can help. Call 0800 073 1932 for a free, no obligation review